tf03_st_02_reallocating_specia66e19a93d2b08-6f418a5de759b8c1.pdf

The document examines the disproportionate distribution of Special Drawing Rights (SDRs) under the IMF quota system, noting that Africa received only 5% of the 2021 allocation. It proposes that G20 countries reallocate a minimum of USD 50 billion to African Financial Institutions (AFIs), specifically highlighting the African Development Bank's (AfDB) Hybrid Capital Instrument (HCI) as a risk-free mechanism to leverage funds for climate adaptation, mitigation, and food security. The paper also recommends expanding the list of African prescribed holders of SDRs to include institutions like Afrexim Bank and the Trade Development Bank to increase financing options.

• The IMF's quota-share based allocation of SDRs creates significant disparities; in the 2021 allocation of USD 650 billion, the African continent received only 5% (approximately USD 33 billion), while the United States received 17%.
• African countries have demonstrated a higher utilization of SDRs than any other region, with a take-up rate of approximately 90% in 2022. These funds were primarily used to supplement national budgets (over 50%), bolster foreign reserves (33.9%), and support pandemic spending (22.6%).
• The African Development Bank (AfDB) proposed a Hybrid Capital Instrument (HCI) that allows member states to reallocate unused SDRs while maintaining their reserve asset status, potentially leveraging contributions three to four times to fund climate adaptation, mitigation, and food security.
• The paper recommends that G20 countries mobilize a minimum of USD 50 billion for Africa, with USD 25 billion allocated to the AfDB via the HCI, USD 12.5 billion to other AFIs, and USD 12.5 billion to other instruments like the RST or PRGT.
• There is a lack of representation for African financial institutions among IMF prescribed holders; currently, only four AFIs (BCEAO, BEAC, AfDB, and ADF) hold this status, whereas Western institutions are more numerous.

APA

African Future Policies Hub (n.d.). tf03_st_02_reallocating_specia66e19a93d2b08-6f418a5de759b8c1.pdf. https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/39b98123-d9ad-4e18-aa77-e4df2c8656f8/TF03_ST_02_Reallocating_Specia66e19a93d2b08.pdf?ver=1780902966203

Chicago

African Future Policies Hub. tf03_st_02_reallocating_specia66e19a93d2b08-6f418a5de759b8c1.pdf. n.d. https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/39b98123-d9ad-4e18-aa77-e4df2c8656f8/TF03_ST_02_Reallocating_Specia66e19a93d2b08.pdf?ver=1780902966203.

Wikipedia

{{cite report |author=African Future Policies Hub |title=tf03_st_02_reallocating_specia66e19a93d2b08-6f418a5de759b8c1.pdf |url=https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/39b98123-d9ad-4e18-aa77-e4df2c8656f8/TF03_ST_02_Reallocating_Specia66e19a93d2b08.pdf?ver=1780902966203 |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{africanfuturepolicieshubndtf03st02reallocatingspecia66e19a93d2b086f418a5de759b8c1pdf, author = {{African Future Policies Hub}}, title = {{tf03\_st\_02\_reallocating\_specia66e19a93d2b08-6f418a5de759b8c1.pdf}}, institution = {African Future Policies Hub}, url = {https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/39b98123-d9ad-4e18-aa77-e4df2c8656f8/TF03_ST_02_Reallocating_Specia66e19a93d2b08.pdf?ver=1780902966203}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }